British-Italian venture to export Egyptian LNG
A British-Italian joint venture has recently concluded the establishment of a $1.6 billion liquefied natural gas (LNG) plant in Egypt that will operate under the name Egyptian LNG Company.
The venture is on track for project sanction in the second quarter of 2002. The plant will direct its output for export to Turkey, Southern Europe and the United States, reported Al-Ahram.
The Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company will each hold 12 percent of the company’s shares, while British Gas (BG) and Edison International will each hold 38 percent of the shares.
Construction of the onshore liquefaction facility will begin next year at Idko, 50 kilometers east of Alexandria, on Egypt's Mediterranean coast. The plant will produce 3.6 million tons of LNG starting 2005 and is expected to double its output by 2006.
The gas will be extracted from the West Delta Deep Marine fields in the Mediterranean Sea. The facility will offer its services to other regional petroleum companies, engaged in gas exploration and production.
BG, Shell and Edison signed a 25 year Gas Sales Agreement in October 1997 with EGPC to supply gas from the Rosetta Concession, offshore Nile Delta. Gas from the Rosetta field presently enters the Egyptian national grid in Idku. — (menareport.com)
© 2002 Mena Report (www.menareport.com)